Sustainable Finance

Our commitment

Why sustainable finance?

Since inception in 2001, at FARAD Group we have developed a unique approach to business and we have been always driven by a set of solid values defining our identity. From the very start until today, our team has embraced these values under a shared strong belief that finance must take an active part in contributing to the wellbeing of our society. We are convinced that a thoughtful sustainable approach to business is not only a way to act professionally and responsibly, but also an essential competitive advantage in a changing world where ensuring the positive impact of the investment decisions will guarantee the companies’ success on a long-term basis.

This common feeling becomes reality through a proactive integration of the Environmental, Social and Governance (ESG) criteria in all the organisation’s departments and business choices aiming to foster sustainable impact finance initiatives by providing innovative advisory, and management support services.

Why to rely upon us?

Certified members of the B-Corporation community

As an acknowledgment of our responsibility and transparency as well as years of work towards high standards of social and environmental performance, we are certified members of the B-Corporation movement and a pioneer in the world of sustainability with regards to the european financial and insurance sector. By meeting the highest standards of verified public transparency, consideration of stakeholder interests and legal accountability, we aspire to use the power of markets to successfully address social and environmental problems.

Financial skillfulness in serving a new economy

We believe that, now more than ever, the financial industry cannot possibly only look at short-term benefits and the maximization of profit, without paying attention to the paths that lead to the result. Therefore, we put our deep financial expertise in the areas of assets and funds management and of wealth planning and insurance brokerage at the service of a new economy, enabling social and environmental initiatives to generate sustainable impact

Standing out with innovative solutions

Our ability in keeping with the highest standards of ESG criteria is attested by certifications and international recognitions our innovative solutions continuously achieve in both areas of asset and funds management. Among the first to have been awarded the LuxFlag ESG Label, our pure SRI fund SELECTRA Best of SRI Balanced is amidst the 11 first SRI funds to be displayed in the Luxembourg Green Exchange (LGX) fund window a proof of security and transparency for investors.

Building trustworthy relations

We are aware that transparency is a corporate necessity. When a business is not open about its operations, it can never be trusted. That is why being honest is the only policy for us. We establish active communication channels towards both our clients and the global market, making sure that their content is always clear and easy to understand. Our clients systematically receive financial statements and performance reports. Data and information are constantly updated and published on our web platforms.

GreenEthica: an entire business dedicated to sustainable finance

As for us business and sustainability are to be considered as two faces of the same coin, we have developed GreenEthica, a new operational unit dedicated to sustainable and responsible finance.
The expertise of the various companies of the Group in the areas of asset and funds management, wealth planning and insurance brokerage is now unified, through GreenEthica, to devise and propose a wide range of cutting-edge financial solutions and instruments that move capital towards a more responsible economy.
Different by nature, the entire range of SRI-related services offered by FARAD Group via GreenEthica are all based on the synergy of a solid internal know-how in the field of sustainable finance and characterized by wide flexibility and high levels of customization. The investor can thus choose the vehicle best suited to his needs.
Under this banner are now included products and long-standing projects such as PureSRI database, GreenEthica Benchmarks and PhilanVie, a life insurance policy focused on philanthropy. Also included in GreenEthica is the fund SELECTRA Best of SRI Balanced, among the first SRI funds listed on the Luxembourg Stock Exchange’s green window LGX.
Learn more about our ESG investment opportunities:

Best of SRI

About

Best of SRI is an investment opportunity entirely developed by our investment team focusing exclusively on SRI strategies implemented through SELECTRA Best of SRI Balanced, a UCITS investment fund or via Best of SRI Balanced management lines. Both fund or management lined are characterized by a high ESG sustainability score and certified by providers specialized in the analysis of ESG / SRI criteria.

Mission and vision

Despite the growing attention to include ESG criteria in investments strategies, the excellent performances typical of SRI investments are not always sufficient to balance the technical requirements and peculiarities of sustainable finance.
This is the reason why FARAD Group has created Best of SRI: a 100% sustainable investment solution easily accessible for retail and institutional investors, combining performance, sustainability and limited risk thanks to its possible trade-offs among risks and returns.

Structure

Best of SRI fund and portfolio management line invest in a portfolio focusing on the best pure SRI UCITS funds marketed in Europe selected by a proprietary database created with the aim to map the whole European SRI market.
The underlying assets are then selected thanks to an internally developed algorithm which maximises the performance while minimizing volatility for a target period.
A reference index - SELECTRA Balanced SRI Index- is used to compare the monthly performances along with other official indexes.
The advantages of this particular strategy are:
- Large investable universe as structured in open architecture to offer the best opportunities in terms of strategies and focus of investment in terms of expected risk-return.
- All the selected titles are certified by providers specialized in the analysis of ESG / SRI criteria on single direct titles.

GreenEthica Social Impact Bond

About

GreenEthica Social Impact Bond serves as a vehicle for green securitisation transactions (permitted by the 2004 Luxembourg Law on Securitisation) specifically focusing on green and social bonds . As an outcome of intense analysis, GreenEthica Social Impact Bond has been set-up by a core team of highly experienced financial professionals part of FARAD Group to address the growing market interest in those debt instrument, particularly in Luxembourg, a global hub for green and social bonds.

Mission and vision

Our mission is to finance social and environmentally friendly projects by providing a highly valuable financial vehicle to raise funds.
We offer specialised investment solutions that connect socially responsible investors to micro, small and medium enterprises and focus on development projects related to clean water, renewable energy, energy efficiency, habitat restoration, acquisition of land, or mitigation of climate change impacts or any other social and environmentally friendly activity.

Structure

GreenEthica Social Impact Bond is able to set-up a fully dedicated vehicle, according to client specificities.
Our set-up service includes the following activities:
-Project analysis
-Preparation and issuance of the securities
-Account opening c/o the custodian bank
-Listing on Luxembourg Green Exchange
-Accounting and auditing
Green bonds vs SRI / Impact Investing funds:
-Capital catalyzation on a single project rather than on a pipeline of projects
-Issuing bonds on the market instead of more risky equity instruments (collective schemes)
-Greater liquidity of the product than the equities of an alternative fund
-Transferability of certificates (increased liquidity)
-Reduced set-up and management fees compared to collective schemes
-Possibility to finance smaller-size projects ( starting from EUR 2.5 million)
-The product is listable on the Luxembourg Stock Exchange being therefore eligible for investment by UCITS funds.
-Shorter issuing timing (around 3 weeks) vs a fund ( around 3 /4 months)
- Wider investment universe